Saturday, July 30, 2016

Croatia Airlines posts improved half-yearly results


Croatia Airlines has posted improved results for the first half of the year after increasing its passenger numbers and reducing losses. The carrier handled 822.260 travellers on board its aircraft during the first six months of the year, an increase of 2.5% compared to the same period in 2015. Of those, 212.881 passengers were carried on domestic flights, up 3.4%, while 593.422 travellers flew on international services, an improvement of 3.3%. The remaining 15.957 passengers were carried on charter flights, down 27.5% year-on-year. However, charters accounted for only 2% of overall traffic. The airline operated 12.388 flights during the first two quarters, an increase of 0.7% compared to the same period last year. The average cabin load factor stood at 65.5%, up 1.2% on 2015. Loads improved on international flights by 1.3% for an average of 65.4%, while on domestic services they were up 1.5% to 63.6%.

Croatia Airlines handled its millionth traveller of the year on July 15, twelve days ahead of 2015. "This year's passenger record comes as a result of positive trends in our business, as well as the growth of our destination network. In June we launched flights from Zagreb to Lisbon, Milan, Prague and St. Petersburg, which we did not serve beforehand", the airline's CEO, Krešimir Kučko, said. He added, "By the end of the year, we expect to see our passenger numbers grow 6%". During the first half of the year, Croatia Airlines improved its ticket sales by 1%, with bookings at similar levels to 2015 outside of Croatia and up 5% in its home market. At the same time, foreign carriers saw sales decline 5%.

On the financial front, the Croatian carrier’s consolidated net loss was reduced by 13.3% to 11.3 million euros, down on last year’s 13.0 million euros, but still above 2014s 4.9 million euro loss. Croatia Airlines' revenue grew 0.1% to 84.5 million euros. The airline said revenue growth slowed as a result of reduced fares in the face of strong seasonal competition on the Croatian market. On the other hand, proceeds from cargo handling fell 12%. The airline reduced its expenditure by 2% to that of last year. It spent most on flight operations, passenger services, maintenance and promotions and sales. At the end of H1, Croatia Airlines had 971 employees, which is up from 950 last year. The carrier took on more staff in its ground handling division as it begins preparing to shift its operations to Zagreb Airport's new passenger terminal. Furthermore, the airline says it hired additional cabin crew.

65 comments:

  1. LF is still a bit low. Croatia Airlines should perhaps consider some more charter flights.

    ReplyDelete
    Replies
    1. low load factor seems to be chronic for all ex-Yu airlines.

      Delete
    2. LF might actually go down a bit because of F100 introduction

      Delete
    3. LF low ? Are you kidding ? For a European short haul operator, this is catastrophic.

      More interestingly, there is no info provided on their year on year RPKs or ASKs.... Also, no insights into their year on year RASK or yield

      Getting behind these will give a better picture as to whether the CEO is correct in his prognosis of "positive trends" in the business.

      Delete
  2. Good that numbers are up. Losses are still quite high though.

    ReplyDelete
    Replies
    1. Losses will decrease during peak summer.

      Delete
  3. ......"The average cabin load factor stood at 65.5%, up 12.5% on 2015."....
    EX-YU, the figure 12,5% must be wrong, it's typo, isn't it ?

    ReplyDelete
    Replies
    1. Yes, it is up 1.2% not 12.5%. Apologies.

      Delete
  4. I think this is the right way to grow, slowly slowly without rushing and without having to backtrack and shut down several routes within a year. Keep up the good work OU, we are proud of you. :)

    ReplyDelete
    Replies
    1. Yeah growing pax numbers by less than 10% over the last 8 years while making loses and selling off assets is totally the way it should be done.

      Globally, airlines are growing extremely fast in developing countries. 2-3 growth is only for extremely mature markets such as North America and Western Europe, but even these markets are growing faster than that because of the demand for air travel right now.

      Delete
    2. Nonsense. You can't look it at it like that. OU basically lost its coast to lowcost carriers and they risk being completely pushed out of DBV this winter season.

      So with no government help, no rich daddy in desert, OU had to find a way to survive. So a 6% passenger growth is respectable. Also, don't forget that this is the first year after restructuring when they could actually grow.

      Delete
    3. The thinly veiled references to Air Serbia can't excuse the fact that CTN has wasted their huge opportunity of being based in a country with a great tourist potential and an EU member.

      The fact that CTN lost so much market share in the coast is a huge catastrophe, especially considering the PSO funds and grants they got from various institutions and local governments.

      CTN is no better than Jat Airways. An experienced and professional management team should be brought in.

      Delete
    4. Yeah, easier said than done. What's the most important thing is that they are finally moving in the right direction. These improved results will make it easier for them to increase their competitiveness, especially once new regional jets arrive.

      Delete
    5. Anonymous that is bullshit you are talking, I presume you are Mr. Kučko, or someone near to him.

      I would say that good result is 2-3%, but if in same time we have 8% increase of air traffic in Croatia one can see something is wrong, isn't it.

      Not to mention how Air Serbia takes share of passengers in market where Croatia and Air Serbia fly in. Especially how Air Serbia "still" passengers from Zagreb, Split, Dubrovnik and Pula where they have 32 weekly flights compare to just 3 Croatia airlines weekly flights on Split-Belgrade route.

      Delete
    6. What regional jets and when are they coming?

      Delete
    7. Purger, your hate for OU is not allowing you to see the whole picture that is that OU needed to stagnate so that it can grow again. This summer season cash flow will increase which will be like a breath of fresh air.

      We'll talk in winter season.

      Also, JU has shown us that they are unpredictable with their schedule. Even if they grew a lot in recent times, their Balkan network is still weak. JFK is losing millions and their 07.30 departure will have even less connections then in summer plus less p2p demand from BEG. So they will have their hands full.

      No airline can say that they are a butik or high class or serious player and then fly 4/week to SKG or 7 to ATH. lol

      But I guess that now when you write for Tango6 and that you get free tickets from ASL you have to praise them.

      At least OU is more realist.c

      Delete
    8. Anon 12:29

      Purger is one of the most valuable, kind and informative contributors to this blog.
      Please keep it civil and try to learn something from people who are more knowledgeable than you AND not blinded nationalism.

      Delete
    9. What has nationalism to do with anything? These are all facts, something you didn't present in your comments.

      Delete
    10. @ Anonymous 12:19

      You are more than funny!

      I hate Croatia Airlines? I presume that is why I have M&M ff program and I fly with Croatia as much as I can, even when they are more expensive. Cheek it, you can! I presume because of hate I made several hundreds pages of material and spend several hundred hours to help Croatia?

      I have full freedom in Tango 6, first time I will not have this and will be censored by editor I will leave from there. In second.

      Do you really thing that I need free ticket? And that someone can buy me with free ticket? I fly some 30-40 times per year, I am member of several ff program, have a company with 10 employees and you still think someone can buy me with ticket? And did not!

      As I said you are funny.

      Croatia Airlines is joke of company, not because of employees or potentials, but because of management. Did not use their potentials and advantage in region. With this management they will not do that in near (or any) future.

      And there is no any more time. There was solution to counterattack or defend against Air Serbia expansion. I wrote about this so many times. They did nothing. At the end of restructuration they could negotiate with manufacturers or lessors. They did nothing but wait till beginning of 2016 and than had problem with leasing aircraft. They plan two CRJ or ERJ and finish with one old F100!?!?!?! Sapienti sat!

      They need fresh breath? They need time? Luxury they can not afford. They had break for 5 years. Wasn't that enough? Did not use it at all. Just sleep over. And now want to sleep even more? Need more time? For what? Excuses, excuses, excuses. For 25 years now!!!! In same time competition did two shifts.

      Hate? No, I don't hate Croatia airlines! Au contraire. And that is why I can not stand the fact that incompetent management destroy company, sell the rest of property they did not buy, but country for them, and will make in 3-4 years same shit as Adria did, and will not have anything to sell, but just to close name.

      Delete
    11. Anon @ 12.19.... your comments re JU are rather uninformed. Their aircraft utilisation is just over 12 hours per day. That is above industry standards and in the range of LCC utilisation. They push their fleet extremely hard. That is why they have managed to double their AKS's since they took over from Jat Airways.

      Putting aside profitability and LF%, any airline professional will tell you that is about as good as it gets as far as aircraft utilisation is concerned.

      Govt of croatia was stupid for not privatising OU in the good old days, when they were actually doing something good under their previous CEO Misetic.

      As it was, the current CEO has led them to hard times, culminating in the fact that as an EU airline and a country with such a rich tourism industry, they were unable to find anyone remotely interested in taking an equity stake in the airline.

      That says it all....

      The fact that JU did, while envious for sure, is nobody's fault but good fortune alone....

      Delete
    12. Purger, calm down before you get a heart attack !

      The real problem here is not the mgt, but THE government and their interference in the running of the airline. That is the real source of the problem.

      Poor old Kucko, he is simply a lame duck CEO who can't make any decisions. He is simply a puppet dancing to the puppeteers string pulling.

      if you want change, then direct your frustrations and venom at the Govt. It is THEIR airline and they are the ones that make the decisions.

      There is a cost of EU entry and this cost comes at a price. They need to favour other EU airlines with access to their market and are the real reasons why the handbrake has been put on OU.

      If mgt was really free to do as they wished, they wouldn't have got the airline into such a situation.

      No one in their right mind would.

      Delete
    13. He can't calm down, you should have seen him and his attitude during a few meetings. Why do you think he was never taken seriously either by the government or OU.

      Delete
    14. Anonymous 6:35, with a government like this one (or the ones before) or OU management, someone should tell them how things really are. Btw., it's not nice to insult someone the way you do in your post

      Delete
    15. I must say that I don't buy the story of him being a misunderstood genius. Sorry, this is only my feeling.

      Delete
    16. But maybe he just might be a genius whose hands are tied by the Govt ? It's obvious he doesn't make the decisions, so give him some benefit of the doubt.

      I actually feel sorry for him. Imagine being the CEO and not being able to make any decisions ? It can't be easy, no matter who is in the chair

      Delete
    17. Anon 06.48

      I am sorry but you should see the insults this Purger you call an expert has directed our way. Those were rude. Most of the time we are not allowed to make the changes Purger 'demands' of us but he keeps on screamind and shouting like a child.

      Delete
    18. Jako zanimljiva druga strana price.

      Delete
    19. Government does not take care. They appoint CEO to do the job for them. When I had meeting with minister of transportation he said "I do care about Croatia Airlines, but you must understand that I have several thousand employees in Croatian railway, lot of problems with Jadrolinija...". I talked with two ministers and their question was "we are in some alliance with that German company right?", "I fly to Brussels with that plane have 'ventilator' and goes brrrrrrum", "I don't want Croatia to finish as that Hungarian company, what was it's name?", "Croatia Airlines is one of best company in Europe and that is why we have so huge share in all Croatia especially in Adriatic airports", "Croatia is so important as it's connected all the airports in Croatia"...

      Basically when minister get information that Croatia Airlines is profitable he does not have clue how (selling of airplanes, engines, Pleso prijevoz...), and he is happy as he will have no extra job, needing for finance it, strikes... He don't need anything more...

      I did not speak with Mr. Kučko personally, but what I heard on meeting where he speaks, were at least strange thinks. For example in one huge meeting he said "if Croatia go bankrupt and if we open new company we will lost all slots, membership in Star Alliance, code-share agreements...". I react on that and ask him if he is familiar with examples of Swiss, Brussels/Sabena, Olympic and which slots or code-share they lost? He did not know answer. Also when he said that they want to order A319 I ask him does he know how many A319 is ordered in this moment especially compared to A320 and A321, and why it is like that, he said he does not have a clue... etc. etc...

      If Mr. Kučko can not act and can not implement his plan he should quit and explain publicly why. There is line where you can not go as CEO. Let me remind how Mr. Matković was against concession of Zagreb airport. But he always said it is Government decision but he doesn't want to be part of it.

      But as I said I don't thing Government care about Croatia if it is "profitable" doesn't meter how.

      I would like to know what was those things they were not allowed. Till someone give me examples of those Government interventions, that is just excuse, nothing else. In this country one can just see excuses. "I am genius but I am not allowed to show my geniality". "We want to do it but European union does not allow us" (that is most common excuse, children in school blame European union for get bad marks). We are country of genius with excuses. And in my 25 years in business I find that 90% of those excuses are nothing else but excuse not to work or excuse for not having results.

      What I know is that Mr. Kučko publicly present at least 10 plans for new planes in just 3 years (several times I publish those plans that were publicly presented)?!?!?!?! I also know whit whom, when and how he speaks about leasing planes for this season. And it was not about Government permits, but about "sorry too much too late" and "I did not know...". I will just say Estonian and Adria...

      I was always there for Croatia Airlines, everybody knows that. But management in Croatia found any idea that is different from "ne talasaj" as attack to them. I found that when you ask simple question like "why you don't open flights on Friday at 18:00 to Dubrovnik and back on Sunday at 20:00 for migrants during winter when your planes does not have enough flights and it is same if they are parked in Zagreb or Dubrovnik", they react like you are No.1 enemy that want to make us not competent. Your proposal for them is not opportunity but attack! Why on earth? My efforts have always been only for the benefit of Croatia Airlines. I never had any other goals or hidden reasons. That is why I never want any money for my work on Croatia Airlines or Zagreb airport even when I was asked to take some.

      Delete
    20. Totally support Purger. Let me just mention how competent Kučko is with example when he repeat constantly that Air Serbia is not of any danger to Croatia Airlines, that it is not a treat at all that can harm Croatia Airlines not a bit. Even today he is highlights that Croatia is regional leader, not Air Serbia. Doesn’t meter that by all data Air Serbia is much bigger and better than Croatia (number of passengers, number of routes, number of planes, flights to USA, bigger profitability, superior service, more planes order…). What an expert he is.

      Delete
  5. There is a strong competition on the coast during summer, so OU is still doing a good job, they're not perfect, but they're holding on.

    ReplyDelete
  6. Congratulations! It clearly can be done. Granted the whole restructuring process did start way too late, however better late than never. Croatia has been profitable for the past several years now with profits growing that entire time. By the end of the year, with results over the peak of the season included the overall numbers should be even better.

    ReplyDelete
    Replies
    1. You do know that profit is based on sell and leaseback planes (that was paid of by Government during restructuration), selling Pleaso prijevoz, engines etc?

      Delete
    2. They may well be achieving an accounting profit - which is great. BUT, are they operationally profitable ? With 65% LF and 25% of their volumes covered by PSO subisidies, they should be doing much much better. No other ex-yu airline has the benefit of PSO subsidies.

      Delete
    3. Not true, you are writing presumptions not real number.

      In 2015 CTN revenue was 216 million EUR. PSO is 10 million EUR per year, to that is 4,6% of their incomes, not even close to 25%.

      Even if you try to say that it is about number of passengers or flights that are influence by those PSO that is also not even close tho that number.

      So next time you should check facts not just write presumption.

      Delete
    4. Purger, take a chill pill - the heat is getting to you. Better yet, go take a dip in that beautiful Adriatic water, which will probably do you some good.

      Re-read the above article.

      Volumes refers to passenger numbers - just in case you don't know what that means.

      In the above article it says that 212k passengers out of their total of 822k carried, were domestic.

      212k equates to roughly 25%.

      Yeah ?

      Delete
    5. Not all domestic routes are subject to PSO.

      Delete
    6. Really ? Which ones are not ?

      Delete
    7. All of them are!!!!

      Delete
    8. You're right. I checked. Sorry about that. I thought that they went well over the number of flights covered by the subsidy agreement. They don't.

      Delete
  7. Ou is likely to hit 2 mil pax this year. Ou can possibly position itself as a main carrier bringing connection to the region during winter time when the overall connectivity is horribly poor. In the summer it should stagnate that connecrivity and focus on croatian coast. Hopefully the new planes can help to make that formula work.
    SJJ, TGD,SKP,PRN can all use several european routes from their cities with a 45 min stop in ZAG. Good for ZAG and others as well...
    I also hope their upcoming winter network will see at least 15pw additional flight from ZAG. It wont be a major expansion but that is needed if they want to make that 6% growth.

    ReplyDelete
  8. since its a slow news day a bit of OT from todays Guardian:

    Records of hundreds of Flydubai flights show pilots say they are being pushed too hard

    https://www.theguardian.com/business/2016/jul/29/airline-pilots-complain-dangerous-fatigue-leaked-documents-flydubai

    ReplyDelete
    Replies
    1. What you think OU results are not important and slow news?

      Delete
    2. slow news means not so many comments. gosh relax.

      yes OU results is the most important thing, i forgot.

      Delete
  9. They should take a greater advantage of the coastal cities.

    ReplyDelete
    Replies
    1. They should have built a fortress around this years ago.

      Sadly and shamely, opportunity lost.

      They don't need a strategic partner, they need a better management team.

      Delete
  10. Hopefully in 2017 they crack 2 million.

    ReplyDelete
    Replies
    1. With a booming tourism industry, they should've achieved +2M passengers years ago. Infact, they should be carrying more passengers than JU, which has no inbound tourism industry. It is just incredible that they can be performing so poorly.

      Additionally, they have a protected domestic market - which only further reinforces the point of what a poor job management has done

      Delete
    2. i don't understand why OU mgt is talking about setting up bases in other ex-yu cities, such as Sarajevo, Skopje and Pristina, when they have 2 huge cities - Dubrovnik and Split - where they could do this for much less cost and better results, instead of handing it to foreign airlines.

      Something is fundamentally wrong with their mgt if they don't see this.

      Delete
  11. Anyone knows which winter route(s) they plan to introduce from Dubrovnik? Frankfurt, London?

    ReplyDelete
    Replies
    1. They should for sure fly to BEG to pick up alot of the transferring traffic, especially since JU doesn't fly to Dubrovnik during the winter

      Delete
    2. Strange that they don't cooperate with JU, given that their networks/routes do not overlap at all - except on Split. Yet, airlines with whom they compete with directly on some routes, they codeshare. Seems like an opportunity for both airlines

      Delete
  12. Good news for OU.

    ReplyDelete
  13. Quick OT:

    C5 Galaxy currently at Zadar.

    ReplyDelete
    Replies
    1. Stigli helikopteri.

      Delete
    2. 5 Kiowa combat helicopter

      Delete
    3. OT:

      Delivery of first batch of Kiowa OH58D helicopters for Croatian AF, 16 are on order.

      Kiowa OH58D are surveillance and anti tank helicopters armed with hellfire missiles.

      Croatia is negotiating deal for these as well, I think initially only 32 missiles will be purchased and 32 Hydra 70 Launchers and rockets, under 200 million kuna deal, however long term number of hellfire missiles will go up, Croatian AF requirements are for around 250-300 missiles.

      It is OT subject btw, however it is a cool little sidetrack story.

      Croatia is also negotiating 12 UH-60 Black Hawks, the next government will need to agree on principles of the deal. Value of 12 helicopters is expected to be around 1 billion kuna, so there's no rush.

      Also Croatian AF is looking at replacing mig 21 in 2020, JAS39 E/F Gripen is most likely candidate and this will cost another 10 billion Kuna.

      Delete
    4. First Croatian Kiowa OH58D, Hellfire missiles not shown

      http://obris.org/wp-content/uploads/2016/07/OH58D_RH.jpg

      Delete
    5. YouTube clip:

      https://www.youtube.com/watch?v=NIuDvMwSdAU

      Delete
  14. They should open Split-Sarajevo. Tourists and inhabitants will use this service if the price is okay

    ReplyDelete
  15. SPU confirmed they will be over 500,000 passengers in July. 20% rise from last year.

    ReplyDelete
    Replies
    1. Fantastic !

      Imagine if OU were visionaries and had set up a base there years ago, how much share of this they would have had today ??

      Samo da places .....

      Delete
    2. great job, Split, still can't believe they don't have any serious plans for the new terminal

      Delete
  16. Nikakvo lepo pisanje exYU ne moze da izvuce CTN iz katastrofe koja neumitno dolazi. Gomilanje gubitaka se nastavlja.

    ReplyDelete
    Replies
    1. They can always sell and leaseback the brand !

      Delete
  17. Imao je CTN toliko sansi steta sto je nije iskoristio.
    I jel se zna nesto novo koji su RJ izabrani .
    INN-NS

    ReplyDelete

Before posting a comment be mindful of other participants and readers. EX-YU Aviation News does not tolerate insults, excessive swearing, racist, homophobic or any other chauvinist remarks or provocative posts with the intention of creating further arguments. Such comments will be deleted as soon as possible. The opinions expressed by those providing comments are theirs alone, and do not reflect the opinions of EX-YU Aviation News. Thank you for your cooperation.